National Western Life Group Inc. (NWLI) announced on Monday that it has entered into an agreement to be acquired by Prosperity Life Group affiliate S. USA Life Insurance company. The cash deal is valued at $1.9 billion.
Acquisition Details
- National Western’s stock has been halted for news until 8:45 a.m. Eastern.
- Under the terms of the deal, each outstanding National Western share will be converted into the right to receive $500 in cash.
- The offer represents a premium of 19.8% to Friday’s closing price of $417.19 and is 7.9% above the Aug. 30 record close of $463.22.
- This acquisition comes after National Western's thorough review of strategic alternatives to enhance shareholder value.
- The deal is expected to be completed in the first half of 2024.
Clear and Immediate Value for Stockholders
National Western Chief Executive, Ross Moody, expressed his satisfaction with the agreement, stating, "The transaction provides clear and immediate value for our stockholders at an attractive premium."
Recent Performance
- Over the past three months, National Western's stock has experienced a decline of 1.1%.
- In contrast, the SPDR S&P Insurance ETF (KIE) has gained 4.0% during the same period.
- The S&P 500 (SPX) has slipped by 2.1%.
This acquisition marks an important milestone for National Western Life Group Inc. as it continues to strive for success in the insurance industry.
